Loveland City Council wants to move forward with Madwire incentive

Company officials say they could expand in Loveland or open another office in Texas

By Jessica Maher Reporter-Herald Staff Writer

Posted:
07/16/2013 10:12:23 PM MDT

LOVELAND -- Calling a $300,000 proposed economic incentive package for Madwire Media an investment in Loveland, the City Council directed staff to move forward Tuesday with a proposal to help the homegrown marketing company stay and grow in the city.

Discussed for informational purposes only with no formal action taken, councilors were in agreement that the incentive request should return for formal consideration, and as soon as possible.

"There's a track record right in front of us, this isn't a start-up," councilor Daryle Klassen said. "This is something that's producing results."

Loveland has been home to Madwire Media since the company's inception in 2009 and officials say they've outgrown their two buildings at the south end of Lake Loveland. The company currently staffs 150 and are projected to have 165 employees at the end of this year, CEO and founder Joe Kellogg told the council.

By January 2014, they would like to move into 57,300-square-feet of space in Rocky Mountain Center for Innovation and Technology, the former Hewlett-Packard/Agilent Technologies campus. Kellogg said the space, which would come with the option of growing into the entire 130,000-square-foot first floor of Building D, is ideal because of the size, openness and growth potential.

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"I think we'd be probably hard-pressed to find another facility that would work for us inside of Loveland," Kellogg said.

Kellogg said the other option would be to expand to Austin, Texas, though he said the current 150 employees would remain in Loveland and the company would operate with two campuses.

"Our first choice is clearly Loveland," he said.

In a letter sent last month to City Manager Bill Cahill, Kellogg requested $300,000 in incentives from the city. The first payment -- $150,000 -- would come when Madwire signs a 10-year lease with Cumberland & Western, the company that owns the building.

The next payment would be when Madwire receives a temporary certificate of occupancy to start moving into the facility. That $100,000 comes with a stipulation that Madwire create 100 new full-time jobs over the next 24 months. If those jobs are not realized, the company's principals would have to pay the city back.

The incentive deal also proposes that the city not collect about $47,600 in taxes and fees. The Loveland Development Fund, a local nonprofit not connected to the city, has pledged $50,000 to help get Madwire into the facility. Total tenant finishing and moving costs are expected to top $800,000, Kellogg said.

Despite praise for the company and its potential, Mayor Cecil Gutierrez was among those who said he was concerned about a 'frontloaded' incentive request.

"I want to make sure what we do is help a Loveland company to grow, but I also have a fiduciary responsibility to our citizens," Guterriez said.

A formal Madwire incentive proposal could return to the council for initial vote on Aug. 6.